Answer:
Correct option is (a)
Explanation:
Any difference in the amount of par value of bond and the cost at which it was acquired. The organization can either choose to expense the discount or held the same as an asset that is amortized over the years till maturity of bond.
Unamortized discount is the amount that is not yet expensed. The same is reported on the balance sheet as a deduction from face value of bond.
Answer:
The answer is Balance sheet accounts are overstated and income statement accounts are understated.
Explanation:
The best time to invest would be <span>c : when sales are consistent.
When sales are consistent, companies do not have to worry about unpredicted occurrences that could threaten their finance because they could always cover it in the next inflow. During this time, company could start making their investment as long as the investment is highly liquid.</span>
Answer:
Journal Entries
Date Account Titles and Explanation Debit Credit
April 30 Salaries expenses $4,800
($12,000/5) * 2
Salaries payable $4,800
(To record the Accrual of salaries expense)
May 30 Salaries Expenses
($12,000/5)*3 $7,200
Salaries payable $4,800
Cash $12,000
(To record the payment of salaries expenses)